BofA to sell 100 Federal: Report

Bank of America Corp. (NYSE: BAC) has a tentative deal to sell its tower at 100 Federal St. to Boston Properties Inc. (NYSE: BXP) for about $600 million but will maintain staffing levels at the building, according to a report in the Boston Globe.

The bank, Massachusetts' largest by assets, has said it was considering selling its the 37-story landmark tower in Boston's Financial District, the city's sixth-tallest building. Two weeks ago, BofA announced plans to sell three high-rises in New York and Charlotte, N.C., its headquarters, as it works to get out of the real estate business to focus on improving its profits.

BofA spokeswoman Kelli Raulerson declined to comment on the deal. BofA’s share of the office space at 100 Federal St. will remain the same, even if the company sells the building.

"Should we choose to sell our ownership stake in certain property, we will continue to lease space in those properties and there will be no impact to employees," Raulerson said. BofA occupancy, currently a little under 60 percent, will likely remain the same via lease-back arrangements.

Boston Properties owns 53 buildings in the Greater Boston area with 12.8 million square feet of office space, making it one of the area's largest landlords. The Boston-based real estate trust also owns the John Hancock Tower and the Prudential building, Boston's tallest skyscrapers.

A Boston Properties spokeswoman declined to comment on the sale, which is reportedly being handled by real estate services firm Cushman & Wakefield. A Cushman spokesman declined to comment.

BofA’s 100 Federal St. floor space is lower now than at the end of 2010, when the bank reported it occupied 65 percent of the building. The Boston assessor's office valued the tower and land at $426.7 million in 2011, with an estimated tax of $13.2 million.

The 100 Federal St. building was built in 1971 on a 1.9 acre lot. The 1.6 million square-foot building, one of BofA's largest, served as the headquarters of Bank of Boston and then FleetBoston Financial before Bank of America bought Fleet in 2004.

Financial sector difficulties have led to 15 percent average vacancy rates in the Financial District and flat rental prices. The city's assessor's office recently reduced the assessed value of most of the Financial District’s major office buildings, including 100 Federal St. Still, investment interest remains steady. Exchange Place recently sold for $610 million, and 33 Arch St. sold for $365 million price when it was sold last year to TIAA-CREF.